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2023
Form OR-20-S Instructions

Oregon S Corporation Tax

Contents

Purpose of Form OR-20-S ...................................2 Form instructions
Important reminders ............................................ 2 Heading and checkboxes ....................................................7
Questions ...............................................................................8
What’s new and Looking ahead ............... 2, 3
Line instructions
Estimated tax payments ..................................... 3
Additions ...............................................................................9
Filing information Subtractions ........................................................................ 10
Who must file with Oregon? ..............................................4 Net loss deduction ............................................................. 11
Excise or income tax? ........................................................... 5 Tax ........................................................................................ 11
Shareholder information .....................................................5 Credits .................................................................................. 11
Composite returns ............................................................... 5 LIFO benefit recapture addition ...................................... 12
Withholding requirement ...................................................5 Net tax .................................................................................. 12
E-file .......................................................................................6 Payments, penalty, interest, and UND ............................ 12
Federal audit changes ..........................................................6 Schedule ES—Estimated tax payments
Amended returns, Protective claims ................................ 6 or other prepayments ................................................... 12
Total due or refund ............................................................ 13
Filing checklist Schedule SM instructions ................................................. 13
Due date of return, Extensions .......................................... 6
Payments ............................................................................... 7 Do you have questions? .................................... 14
Assembling your return ...................................................... 7
K-1 Summary ........................................................................ 7 Appendices
Appendix A, 2023 Schedule OR-ASC-CORP code list ... 15
Mailing Addresses ................................................... 7 Appendix B, 2023 Tax rates and minimum tax.............. 16
Appendix C, Alternative apportionment ....................... 17

Information contained herein is a guide. For complete details of law, refer to
Oregon Revised Statutes (ORS) and Oregon Administrative Rules (OAR).

Go electronic!
Fast • Accurate • Secure
File corporation tax returns through the Federal/State Electronic Filing Program. See “E-file.”

Visit us online: www.oregon.gov/dor

• Registration and account status.
• Online payments and communication.
• Forms, instructions, and law.
• Announcements and FAQ.
• Updates to instructions.

150-102-025-1 (Rev. 10-17-23) 1 2023 Form OR-20-S Instructions

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                                                               before January 1, 2029, and any tax year to which the 
Purpose of Form OR-20-S                                        NOL may be carried back. For example, a taxpayer with 
                                                               a loss in tax year 2023 may carry their loss to tax year 
Use  Form  OR-20-S,  Oregon  S  Corporation  Tax  Return 
                                                               2020. Visit our website at  www.oregon.gov/dor for addi-
to calculate and report the Oregon corporate excise or 
                                                               tional information.
income tax liability of a business entity taxable as an S 
corporation doing business in Oregon or with Oregon 
                                                               Credits
sources of income.
                                                               Agricultural Employer Overtime Tax Credit 
Important reminders                                            HB 4002 (2022) creates a refundable tax credit for over-
                                                               time paid to agricultural workers. The measure requires 
If your registered corporation or insurance company            agricultural employers to pay certain workers for over-
isn’t doing business in Oregon and has no Oregon-              time hours worked and creates a refundable personal 
source income, then you don’t need to file a corporation       income or corporate tax credit for employers for a per-
tax return.                                                    centage of wages paid as overtime pay to agricultural 
                                                               workers for tax years beginning on or after January 1, 
Revenue Online. Revenue Online provides convenient,            2023, and before January 1, 2029. Taxpayers must apply 
secure access to tools for  managing your Oregon tax           for the tax credit through the department. Note that this 
account. With Revenue Online, you may:                         credit can offset corporation minimum tax determined 
                                                               under 317.090. Visit our website at  www.oregon.gov/dor 
• View your tax account.
                                                               for additional information.
• Make payments.
• View correspondence we sent you.                             Forest Conservation Tax Credit (FCTC) 
• Check the status of your refund.
                                                               SB 1502 (2022) creates a non-refundable Forest Conserva-
For more information and instructions on setting up your       tion Tax Credit (FCTC) for the stumpage value of timber 
Revenue Online account, visit  www.oregon.gov/dor.             left standing on the land of a small forestland owner. The 
                                                               amount of the tax credit is certified by the Department of 
                                                               Forestry (ODF) and applies to tax years beginning on or 
What’s new                                                     after January 1, 2023.
Note: Not all information in this section pertains to all      Additionally, HB 2161 (2023) amended the FCTC from 
taxpayers or form types. If applicable, refer to House Bills   SB 1502 (2022) to increase the computation of the credit 
(HB) or Senate Bills (SB) as shown.                            under certain conditions. See the House Bill for addi-
                                                               tional information. 
Visit   www.oregon.gov/dor for possible updates to 
these instructions.                                            Opportunity Grant Fund (auction) tax credit sunset 
                                                               (ORS 315.643) 
General                                                        The Opportunity Grant Fund (auction) tax credit sunset 
                                                               on January 1, 2023. The tax credit may be claimed in tax 
Tie to federal tax law                                         years beginning on or after January 1, 2023, if the credit 
In general, Oregon tax law is based on federal tax law.        is purchased at auction on or after January 1, 2023, and 
Oregon is tied to the federal definition of taxable income     before March 1, 2023.
as of December 31, 2022; however, Oregon is still discon-
nected from:                                                   Extended credits 
• Federal subsidies for prescription drug plans (IRC           The following credit is extended to tax years beginning 
§139A; ORS 317.401).                                           before January 1, 2028:
• Deferral of certain deductions for tax years beginning 
                                                               •  Cultural Trust contribution (ORS 315.675) ........code 807
on or after January 1, 2009 and before January 1, 2011 
may require subsequent Oregon modifications (IRC               The following credits are extended to tax years begin-
§168(k) and §179; ORS 317.301).                                ning before January 1, 2030:
                                                               •  Employer scholarship (ORS 315.237) ..................code 847
Net Operating Loss (NOL) carryback                             • Individual Development Account (IDA) 
SB 1524 (2022) allows taxpayers who use NAIC codes 111 or      donation (ORS 315.271) .........................................code 852
112 (referring to taxpayers engaged in crop produc¬tion,       •  Reservation enterprise zone (ORS 315.506) .......code 810
animal production or aquaculture) to claim a three-year        • Short line railroad rehabilitation 
NOL carryback. The three-year NOL carryback applies            (ORS 315.593) ........................................................code 872
in tax years beginning on or after January 1, 2023, and        •  University venture fund (ORS 315.640) .............code 864
150-102-025-1 (Rev. 10-17-23)                                2                                      2023 Form OR-20-S Instructions

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The following credits are extended to tax years begin-                              Sale of publicly supported housing credit  
ning before January 1, 2032:
                                                                                    HB 2071 (2023) creates a tax credit for the sale of publicly 
•  Agricultural workforce housing                                                   supported housing. The tax credit equals 2.5 percent 
(ORS 315.164) ..........................................................code 835    of the lesser of the sales price or appraisal value if the 
• Oregon affordable housing lender’s credit                                         owner held the publicly supported housing for at least 
(ORS 317.097) ..........................................................code 854    five years and 5.0 percent of the lesser of the sales price 
                                                                                    or appraisal if the owner held the publicly supported 
Sunset credits no longer available, including 
                                                                                    housing for at least ten years.
carryforward 
                                                                                    The new tax credit applies to tax years beginning on or 
The following credits are no longer available, including 
                                                                                    after January 1, 2024, and before January 1, 2030. It will be 
carryforward, for tax years beginning before January 1, 
                                                                                    certified by Oregon Housing and Community Services. 
2023. Any remaining credit amount not used is lost.
                                                                                    Short-line railroad rehabilitation (ORS 315.593)  
• Alternative qualified research activities 
(ORS 317.154) ...........................................................code 837   HB 3406 (2023) amended ORS 315.593 to eliminate the 
• Qualified research activities (ORS 317.152) ......code 858                        distinction between Tier 1 and Tier 2 railroads for pur-
•  Repatriation credit (due to IRC §965) .................code 870                  poses of the short-line railroad tax credit. All taxpayers 
                                                                                    may claim 50 percent of the costs incurred to rehabili-
                                                                                    tate the short-line railroad. A credit is not allowed for an 
Looking ahead
                                                                                    amount equal to the greater of costs used to claim the 
                                                                                    IRC 45G credit or the credit limitation in IRC 45G(b)(1). 
Credits                                                                             Rehabilitation costs that are funded by a federal or state 
Oregon Affordable Housing Lender’s Credit                                           grant cannot be used to claim the credit.
(ORS 317.097)                                                                       The credit is certified by Oregon department of Trans-
Two separate bills amended this credit:                                             portation (ODOT). The changes described here apply 
                                                                                    to tax years beginning on or after January 1, 2024, and 
• HB 2071 (2023) amended ORS 317.097 to allow finan-
                                                                                    before January 1, 2026.
ciers of limited equity cooperatives to claim the ORS 
317.097 tax credit if the tax credit savings are passed on 
to the tenants of the limited equity cooperative. This                              Estimated tax payments
change applies to tax years beginning on or after Janu-
ary 1, 2024.                                                                        Requirements
• SB 892 (2023) amended ORS 317.097 to apply to proj-
ects involving households earning 80 percent or less of                             Oregon estimated tax payment requirements aren’t the 
the area median income. Prior to the amendment, ORS                                 same  as federal estimated  tax payment requirements. 
317.097 applies to projects involving households earn-                              You must make estimated tax payments if you expect 
ing less than 80 percent of the area median income.                                 to owe tax of $500 or more. This includes Oregon mini-
                                                                                    mum tax. This requirement also applies if you’re an S 
Qualified semiconductor company research credit                                     corporation paying tax on income from built-in gains or 
HB 2009 (2023) allows a qualified semiconductor com-                                excess net passive investment income. See ORS 314.505 to 
pany  to  claim a  tax  credit  based  on  research  and                            314.525 and supporting administrative rules.
development expenses. The qualifying research and 
                                                                                    If you don’t make estimated payments as required, you 
development expenses are determined based on IRC 41. 
                                                                                    may be subject to interest on underpayment of estimated 
Oregon allows a credit equal to 15 percent of the qualify-
                                                                                    tax (UND). Refer to Form OR-37 if you have an under-
ing research and development expenses as determined 
                                                                                    payment of estimated tax.
in IRC 41. The maximum amount of credit varies based 
on employee numbers. A portion of the tax credit is 
refundable if the taxpayer has fewer than 3,000 employ-                             Payment due dates
ees. The exact refund percentage depends on how many                                Estimated tax payments are due quarterly, as follows:
employees the taxpayer has.
                                                                                    • Calendar year filers: April 15, June 15, September 15, 
The new tax credit applies to tax years beginning on or                             and December 15.
after January 1, 2024, and before January 1, 2030. The tax                          • Fiscal year filers: The 15th day of the 4th, 6th, 9th, and 
credit will be certified by Oregon Business Development 
                                                                                    12th months of your fiscal year.
Department (OBDD). 
                                                                                    • If the due date falls on a Saturday, Sunday, or legal 
                                                                                    holiday, use the next regular business day.
150-102-025-1 (Rev. 10-17-23)                                                     3                                 2023 Form OR-20-S Instructions

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Payment options If your expected net tax changes during the year, refig-
ure your estimated tax payments using the Estimated tax
Important: For details about making payments with payments’ worksheet.
your return, see “Filing checklist” below.
To avoid additional charges for UND, you must pay the
Estimated payments may be made by electronic funds amount of any prior underpayment plus the amount of
transfer (EFT), online, or by mail. the current required payment.
EFT. You must make your Oregon estimated payments Example: During the year, Corporation A’s expected net
by EFT if you’re required to make your federal estimated tax increased from $2,000 to $6,000. Corporation A made
payments by EFT. We may grant a waiver from EFT pay- timely first and second quarter estimated payments of
ments if you’d be disadvantaged by the requirement $500 before its expected net tax increased.
(ORS 314.518 and administrative supporting rules).
Corporation A should make four payments of $1,500 each
If you don’t meet the federal requirements for manda- during the year. Because of its increased net tax, Corpo-
tory EFT payments, you may still make voluntary EFT ration A will be subject to UND charges for the first and
payments. second quarters. To avoid UND charges for the third and
fourth quarters, Corporation A must make timely pay-
You can make EFT payments through Revenue Online or
ments of $3,500* for the third quarter and $1,500 for the
through your financial institution. To learn more about fourth quarter.
Revenue Online or to make an EFT payment, visit www.
oregon.gov/dor. If you pay by EFT, don’t send Form *$1,000 for the first-quarter underpayment, plus $1,000
OR-20-V, Oregon Corporation Tax Payment Voucher. for the second-quarter underpayment, plus $1,500 for the
required third-quarter installment equals $3,500.
Mail. If paying by mail, send each payment with a
Form OR-20-V, payment voucher, to: Oregon Department
of Revenue, PO Box 14950, Salem OR 97309-0950. Filing information

Include on your check: Who must file with Oregon?
• Federal employer identification number (FEIN). S corporations doing business in Oregon or receiv-
• Tax year beginning and ending dates. ing income from Oregon sources are required to file
• Contact phone. Form OR-20-S, Oregon S Corporation Tax Return, under
the excise or income tax provisions in ORS Chapters
Estimated tax payments’ worksheet 317 and 318. S corporation tax statutes and rules are in
Chapter 314 of the Oregon Revised Statutes and Oregon
(Keep for your records—don’t file with your payment.) Administrative Rules (ORS 314.730 to 314.784).
1. Oregon net income expected in 1. Exemption for emergency service providers. An out-
upcoming tax year. of-state emergency service provider is exempt from tax
2. Tax on Oregon net income (see 2. when operating solely for the purposes of performing
Appendix B). disaster or emergency-related work on critical infrastruc-
ture. Disaster or emergency-related work conducted by
3. Subtract tax credits allowable in 3.
an out-of-state business may not be used as the sole basis
upcoming tax year. Tax credits
for determining that a corporation is doing business in
can’t be used to reduce the $150
Oregon.
minimum excise tax.
Note: Oregon follows the federal entity classification
4. Net tax (line 2 minus line 3). 4. regulations. If an entity is classified or taxed as an S
If the amount on line 4 is less corporation for federal income tax purposes, it will be
than $500, stop. You don’t have treated as an S corporation for Oregon tax purposes.
to make estimated tax payments. For Oregon tax purposes, S corporation income gener-
Caution: If your final tax
ally is taxable to the shareholders rather than the corpo-
liability when you file your
ration. However, S corporations do pay Oregon tax on
return is $500 or more, you may
income from built-in gains or excess net passive income
be subject to UND.
if such income is subject to tax on the federal corporation
5. Amount of each payment. 5. return.
(Divide line 4 by the number of
payments you need to make. The income or loss of an S corporation is reported to
This is usually 4.) each shareholder on the federal form, Schedule K-1. See
“Shareholder information” below.
150-102-025-1 (Rev. 10-17-23) 4 2023 Form OR-20-S Instructions

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Minimum tax requirements. All S corporations doing Important: Don’t file a Form OR-20-S unless you’re
business in Oregon must pay the $150 minimum excise required to do so. Filing an unnecessary return may
tax. The minimum tax isn’t passed through to the share- result in a billing for minimum tax.
holders, but is payable by the S corporation.
Shareholder information
Excise or income tax? Shareholders who meet Oregon filing requirements
Oregon has two types of corporate taxes: excise and must file an Oregon tax return. Refer to the appropriate
income. Excise tax is the most common. Most corpora- Oregon tax returns and instructions for an explanation
tions don’t qualify for Oregon’s income tax. of those requirements, based on shareholder classifica-
tion (individual, corporation, trust, or estate).
Excise tax requirements. Excise tax is a tax for the privi-
lege of doing business in Oregon. It’s measured by net Resident shareholders are taxed on their pro rata share
income. S corporations doing business in Oregon must of S corporation income, loss, and deductions from the
file a Form OR-20-S to report and pay the $150 minimum federal K-1s. Those amounts are modified by Oregon
excise tax. If the S corporation has an Oregon address, additions and subtractions.
generally the S corporation will file an Oregon S Corpora- Nonresident shareholders are taxed on their share of
tion Tax Return and pay excise tax. business income from the federal K-1s, multiplied by the
“Doing business” means carrying on or being engaged S corporation’s apportionment percentage from Schedule
OR-AP, part 1, Apportionment of Income for Corporations
in any profit-seeking activity in Oregon not protected
and Partnerships (ORS 314.734). Nonresident shareholders
by Public Law 86-272. A taxpayer having one or more of
are also taxed on their share of nonbusiness income from
the following in this state is doing business in Oregon:
Oregon sources.
• A stock of goods.
Each individual shareholder of an S corporation may
• An office.
claim their pro rata share of the corporation’s business
• A place of business (other than an office) where affairs
tax credits unless the shareholder is included on a com-
of the corporation are regularly conducted. posite return (ORS 314.752 and supporting administra-
• Employees or representatives providing services to tive rules). The credit is allowable for the tax year of the
customers as the primary business activity (such as individual in which the S corporation’s tax year ends.
accounting or personal services), or services incidental
to the sale of tangible or intangible personal property
Composite returns
(such as installation, inspection, maintenance, war-
ranty, or repair of a product). Pass-through entities with distributive income attribut-
• An economic presence through which the taxpayer able to Oregon sources must file a composite return on
regularly takes advantage of Oregon’s economy to pro- behalf of its nonresident owners who elect to participate
duce income. in the composite filing. A nonresident owner is an indi-
vidual who isn’t a resident of Oregon, a business entity
Income tax requirements. S corporations may still be that has a commercial domicile outside of Oregon, a
subject to the Oregon corporation income tax if they nonresident trust, or a qualified funeral trust. The pass-
have income from an Oregon source. S corporations that through entity reports the nonresident owners’ share of
derive income from sources within Oregon but whose Oregon-source distributive income on one tax return,
income producing activity doesn’t actually constitute Form OR-OC, Oregon Composite Return.
doing business must file Form OR-20-S under the income
tax provisions in ORS Chapter 318. Withholding requirement
Income is from an Oregon source if it’s derived from: An S corporation with one or more nonresident owners
• Tangible or intangible property located or used in Oregon; who have no other Oregon source income is required to
• Any activity carried on in Oregon, whether intrastate, withhold tax on the owner’s distributive share of S cor-
interstate, or foreign commerce that doesn’t otherwise poration income. The requirement is waived if the owner
constitute doing business in Oregon. makes an election to join in the filing of a composite
return, sends us a signed Form OR-19-AF, 150-101-175, or
There is no minimum tax for a corporate income tax filer. meets another exception listed in ORS 314.775 and sup-
Corporations with no business activity in Oregon or porting administrative rules.
without income from Oregon sources, even if registered Each quarter, the S corporation will complete a
to do business in the state, aren’t subject to the excise, Form OR-19-V, Tax for Nonresident Owners Payment
income, or minimum tax and aren’t required to file a Voucher. Send in any required payments with a com-
return. pleted Form OR-19-V. At the end of the year, complete
150-102-025-1 (Rev. 10-17-23) 5 2023 Form OR-20-S Instructions

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Form OR-19 to show how much of each quarterly pay-            federal or other state return with your amended Oregon 
ment belongs to each nonresident shareholder.                 return and explain the changes. 
                                                              If you filed Form OR-20-S and later determined you 
E-file                                                        should file Form OR-20, amend your return using Form 
If you’re required to e-file with the IRS, you’re also        OR-20 and check the amended box. 
required to e-file for Oregon (ORS 314.364). We accept        You may make payments online for your amended 
calendar year, fiscal year, short year, and amended elec-     return at  www.oregon.gov/dor.
tronic corporation tax returns utilizing the IRS Modern-
ized e-file platform (MeF). Beginning January 2024, we’ll     Don’t  make payments  for amended returns with EFT. 
accept e-filed returns for tax year 2023, and will continue   This also applies to e-filed amended returns. For paper 
accepting returns for 2022 and 2021.                          returns, you may pay online or include a check or money 
                                                              order with your return. For e-filed returns, you may pay 
Your tax return software also allows you to make elec-        online or send a check or money order separately. If you 
tronic payments when e-filing your original return.           mail your payment separate from your return, write 
Note: Your paper return may be rejected if you’re             “Amended”  on  the  payment  and  include  a  completed 
required to electronically file your Oregon corporation       Form OR-20-V with the amended box checked.
tax return, unless a waiver request has been approved by      Don’t amend your Oregon return if you amend the fed-
us prior to the filing of the paper return.
                                                              eral return to carry a net operating loss back to prior 
If you’d like to request a waiver, send an email with         years. Oregon allows corporations to carry net operat-
the FEIN, tax year, and reason you’re unable to e-file to     ing losses forward only.
bus.electronicfiling@ dor.oregon.gov, prior to  paper-fil-
                                                              On the estimated tax payments   line on your amended 
ing your return.
                                                              Form OR-20-S, enter the net excise tax per the original 
For a list of software vendors or for more information,       return or as previously adjusted. Don’t include any pen-
search “e-filing” at  www.oregon.gov/dor.                     alty or interest portions of payments already made.
                                                              If paying additional tax with your amended return, you 
Federal or other state audit changes                          must include interest with your payment. Interest is fig-
If the IRS or other taxing authority changes or corrects      ured from the day after the due date of your original 
your federal or other state return for any tax year, you      return up to the day we receive your full payment. See 
must notify us. File an amended Oregon return and             “Interest rates.”
include a copy of the federal or other state audit report.    Pay all tax and interest due when you file your amended 
Mail this separately from your current year’s return.         return or within 30 days after receiving a billing notice 
If you don’t amend or send a copy of the federal or other     from us to avoid being charged a 5 percent late payment 
state report, we have two years from the date we’re noti-     penalty.
fied of the change by the IRS to issue a deficiency notice. 
To receive a refund, you must file a claim for refund of      Protective claims
tax within two years of the date of the federal or other 
                                                              Don’t file an amended return as a protective claim. Use 
state report.
                                                              Oregon Form OR-PCR, Protective Claim for Refund,   150-
                                                              101-184, when your claim to a refund is contingent on 
Amended returns                                               a pending court decision or legislative action. Notify us 
Oregon doesn’t have an amended return form for corpo-         within 90 days of the final determination by filing an 
rations. Use the form for the tax year you’re amending        amended return. Don’t file an amended return before 
and check the amended box.    Always use your current         the pending action is final. 
address. If your address has changed, don’t use your old 
address or our system will revert your current address 
to the old address.                                           Filing checklist

Fill in all amounts on your amended return, even if           Rounding to whole dollars.    Enter amounts on the 
they’re the same as originally filed. If you’re amend-        return and accompanying schedules as whole dollars 
ing to change additions, subtractions, or credits, include    only. Example: $4,681.55 becomes $4,682; and $8,775.22 
detail of all items and amounts, including carryovers.        becomes $8,775.
If you change taxable income by filing an original or         • Due date of your return. Returns are due by the 15th 
amended federal or other state return, you must file an        day of the month following the due date of your fed-
amended Oregon return within  90 days of when the              eral corporation return. When the 15th falls on a Sat-
original or amended federal or other state return is filed     urday, Sunday, or legal holiday, the due date is the next 
(ORS 314.380). Include a copy of your original or amended      business day. 
150-102-025-1 (Rev. 10-17-23)                               6                                 2023 Form OR-20-S Instructions

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• Extensions. See the instructions below for the exten-         summaries and K-1s on CD or a USB flash drive. Label 
sion checkbox. When you file, include the extension as          it with the entity’s FEIN, name, and tax year. If the CD 
the final page of your return.                                  or flash drive is password protected, mail the pass-
                                                                word separately. Include the S corporation name and 
• Payments.
                                                                identification number with the password. 
°  Payments received after the original due date will 
 be applied first to penalty, then to interest, and 
 then to tax [ORS 305.265(13)].                                 Mailing Addresses

°  Estimated payments and prepayments. Identify all             Tax-due returns, with or without payment, mail to:
 estimated payments claimed by completing Sched-                Oregon Department of Revenue
 ule ES on your return. List all payments that were             PO Box 14790
 submitted prior to filing your return. Include the             Salem OR 97309-0470
 corporation name and FEIN if a payment was made                (Do NOT include a payment voucher.)
 by an affiliate of the filing corporation.
°  Online payments. You may pay online for any                  Refunds or no tax-due returns, mail to:
 return at  www.oregon.gov/dor. Search “payments.”              Oregon Department of Revenue
°  Making electronic payments with your e-filed                 PO Box 14777
 return. We accept electronic payments when e-filing            Salem OR 97309-0960
 your original return.                                          Check or money order payments only, mail to:
°  Making check or money order payments with your               Oregon Department of Revenue
 paper return. Make your check or money order pay-              PO Box 14950
 able to Oregon Department of Revenue. Write the                Salem OR 97309-0950
 following on your check or money order:                        (Include Form OR-20-V payment voucher.)
 — Filer FEIN.
 — Tax year beginning and ending dates.
 — Contact phone.                                               Form instructions
°  To speed up processing of your return:
 — Don’t use Form OR-20-V payment voucher.                      Heading and checkboxes
 — Don’t staple payment to the return.                          • Excise or income tax checkbox. Oregon has two types 
 — Don’t send cash or postdated checks.                         of corporate taxes: excise and income. Excise tax is the 
 — Don’t use red or purple or any gel ink.                      most common.  Most corporations don’t qualify for 
• Assembling your return. Assemble your Oregon                  Oregon’s income tax. See “Excise or income tax.”
return forms in the following order:                              Do you pay an excise tax or income tax to Oregon? One 
                                                                box must be checked:
1.  Form OR-20-S,             Oregon S Corporation Income Tax 
 Return;                                                          ° Excise tax if you do business in Oregon.
2.  Schedule OR-AP, Apportionment of Income for Corpo-            ° Income tax if you don’t do business in Oregon, but 
 rations and Partnerships;                                      you have taxable income from an Oregon source.
3.  Schedule OR-PI, Schedule of Partnership Information;        • OR-FCG-20 checkbox.   A reduced tax rate is available 
4.  Schedule OR-ASC-CORP, Oregon Adjustments;                   if you sold or exchanged capital assets used in farm-
5.  Form OR-37, Underpayment of Oregon Corporation              ing. Complete Schedule OR-FCG-20 and check the box 
 Estimated Tax;                                                 in the header of the form.
6.  Form OR-24, Like-Kind Exchanges/Involuntary 
 Conversions;                                                   • Extension checkbox. For an Oregon extension when 
7.  Schedule OR-FCG-20,       Farm Liquidation Long-Term        you’re also filing for a federal extension: Send a copy 
 Capital Gain Tax Adjustment;                                   of the federal extension with the Oregon return when 
8.  Other Oregon statements;                                    you file. Check the extension box on your Oregon 
9.  Oregon credit forms including notice of credit              return and include a copy of the extension after all 
 transfers;                                                     other enclosures. 
10. Copy of federal tax return and schedules;                     For an “Oregon only” extension: Answer question 1 on 
11. Federal Schedule K-1s, if less than 11 shareholders         federal extension Form 7004, write “For Oregon Only” 
 during the year, or K-1 Summary (see below); and               at the top of the form, and include it with your Oregon 
12. Form 7004, Federal extension.                               return when you file. Check the extension checkbox on 
• K-1  Summary.  If  you  had  more  than  10  sharehold-       the Oregon return. 
ers, include a summary of shareholder information.                The Oregon extension due date is the 15th day of the 
Your summary must include each shareholder’s name,              month following what would be the federal exten sion’s 
SSN or FEIN, address, profit/loss sharing percent-              due date. Don’t send the extension until you file your 
age, and Oregon modifications and credits. We prefer            Oregon return.
150-102-025-1 (Rev. 10-17-23)                                 7                                 2023 Form OR-20-S Instructions

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  More time to file doesn’t mean more time to pay your     check this box. We’ll assess penalties if you don’t com-
tax. To avoid penalty and interest, pay your tax due       ply with this requirement.
online, or by mail with Form OR-20-V, by the original 
                                                           • Global intangible low-taxed income (GILTI) included 
due date of your return.      Note: Filing Form OR-20-V 
                                                           on federal return. If you included GILTI on your federal 
isn’t an extension of time to file your tax return.
                                                           return, check this box.
  If you’re making an extension payment by mail, send 
                                                           • Accounting period change checkbox (Excise tax 
the payment to: Oregon Department of Revenue, PO 
                                                           return filers only.) Check this box only if both of the 
Box 14950, Salem OR 97309-0950.
                                                           following apply:
  Include on your check:
                                                             ° The excise tax return covers a period of less than 12 
  ° FEIN.
                                                           months, and
  ° “Extension.”
                                                             ° The short-period return is due to a qualified change 
  ° Tax year beginning and ending dates.
                                                           in accounting period per IRC §441 to §444.
  ° Contact phone.
                                                             Note: A short-period return doesn’t automatically con-
• Form OR-37 checkbox. If you have an underpayment, 
                                                           stitute a qualified change in accounting period. A tax-
you must include a completed Form OR-37. Check the 
                                                           payer that isn’t in existence for the entire year shouldn’t 
Form OR-37 box in the header of your return. 
                                                           check this box. This includes subsidiaries that join or 
  Use Form OR-37 to:                                       leave a consolidated filing group and newly formed or 
                                                           dissolved corporations.
  ° Calculate the amount of underpayment of estimated 
tax;                                                         If you file a short-period return due to a qualified 
  ° Compute the amount of interest you owe on the          change in accounting period and you’re subject to the 
underpayment; or                                           minimum tax, apportion the $150 minimum tax by 
  ° Show you meet an exception to the payment of           multi plying the $150 minimum tax by the total num-
interest.                                                  ber of months in the short period and dividing it by 12.
• REIT/RIC checkbox. If you participated in a REIT or      • Alternative apportionment checkbox. See Appendix 
RIC, you must check the appropriate box in the header      C for complete information. Check this box if you have 
area of the Oregon tax return.                             included a request with your return.
• Amended checkbox. Check the amended box if this is       Name. Enter your company name as listed on your busi-
an amended return.                                         ness registration with the Oregon Secretary of State’s 
                                                           office.
• Form OR-24 checkbox.        Corporations may  defer, 
for Oregon tax purposes, all gains realized in the         • Legal  name.  Enter  the  corporation’s  current legal 
exchange of like-kind property and involuntary con-        name as set forth in the articles of incorporation or 
versions under IRC §1031 or §1033, even though the         other legal document. 
replacement property is outside Oregon. Oregon will        • FEIN. Enter the FEIN of the corporation named as the 
tax the deferred gain when it’s included in federal tax-   filer on the consolidated Oregon return.
able income.
                                                           • DBA/ABN. If the corporation is doing business under 
  Include a copy of your Oregon Form OR-24, Like-Kind      a different name, for example, DBA or ABN, enter that 
Exchanges/Involuntary Conversions, 150-800-734, with       name.
your Oregon return and check the Form OR-24 box if         • Current address. Always enter the corporation’s cur-
all of the following apply:                                rent address. If the address for the year you’re filing 
  ° The corporation reported deferred gain on a federal    was different, don’t use the old address or our system 
Form 8824;                                                 will revert your current address to the old address.
  ° All or part of the property exchanged or given up 
was located in Oregon; and                                 Questions
  ° All or part of the acquired property was located out-
                                                           Questions A–C. Complete only if this is your first return 
side of Oregon.
                                                           or the answer changed during the tax year.
  For a more detailed explanation, see ORS 314.650 and 
                                                           Question D. Refer to the current list of North American 
314.665 and supporting administrative rules regarding 
                                                           Industry Classification System (NAICS) codes found 
apportionment of deferred gain.
                                                           with your federal tax return instructions. Only enter the 
• Federal Form 8886 checkbox and reportable transac-       code if this is your first return, the current code is dif-
tions. If you’re required to report listed or reportable   ferent than you reported last year, or your code begins 
transactions to the IRS on federal Form 8886, you must     with “111” or “112”.
150-102-025-1 (Rev. 10-17-23)                            8                           2023 Form OR-20-S Instructions

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Question G. If this is the corporation’s first return, check Line 1(b). Enter the amount from federal Form 1120-S,
the box and provide all information as requested. If the “Worksheet for line 22a.”
corporation is a successor to a previously existing busi-
Line 1(c). Enter total of lines 1(a) and 1(b).
ness in Oregon, check the box and provide all information
as requested. You would only check one of the boxes.
Additions
Question H. Final returns: A final tax return is required
when a corporation has ceased to exist, withdrawn from Important: Additions for S corporations with federal
doing business in Oregon, dissolved, merged, or reorga- taxable income or LIFO benefit recapture only. S cor-
nized. Check the box and provide requested information. porations without built-in gains or excess net passive
income, start on line 6.
Question I. Utility or telecommunications companies.
Line 2. Total additions
Taxpayers primarily engaged in utilities or telecom- from Schedule OR-ASC-CORP,
Section A .The amount by which any item of income is
munications may elect to apportion income using a
greater under Oregon law than under federal law, or the
double-weighted sales factor formula (ORS 314.280 and
amount by which any allowable deduction is less under
supporting administrative rules). Check the box if mak-
Oregon law than under federal law, is an addition on
ing this election.
your Oregon return. Enter only additions that apply to
Question J. Enter ordinary business income or loss taxable income included in line 1c.
from federal Form 1120-S, line 21.
Use Schedule OR-ASC-CORP, Section A, to report the
Question K. Total Oregon sales. amount and description code of each addition. Use the
description code from the list in Appendix A. The total
• Apportioned returns. Enter the amount of Oregon
of all additions is entered on Form OR-20-S, line 2.
sales from Schedule OR-AP, line 22(a).
Additions include:
• Nonapportioned returns. Enter the amount of sales
as defined by ORS 314.665. Generally, S corporations • Charitable donations not allowed for Oregon. Dona-
doing business only within Oregon will calculate Ore- tions to a charitable organization that has received a
gon sales by adding: disqualifying order from the Attorney General aren’t
deductible as charitable donations for Oregon tax pur-
° Gross receipts from sales of inventory (less returns
poses. Such organizations are required to provide a
and allowances), equipment, and other assets;
disclosure to a donor to acknowledge this. The Attor-
° Gross rent and lease payments received; and
ney General will publish and otherwise make pub-
° Gross receipts from the performance of services.
licly available information identifying the charitable
Note: (This is a non-exclusive list.)
organizations receiving a disqualification order. If you
claimed a federal deduction, an addition must be made
Line instructions on your Oregon return for donations to such charitable
organizations (ORS 317.491).
Do not complete lines 1–5 unless you have taxable
• CPAR addition. If you’re an owner of a partnership
income and tax on federal Form 1120-S.
that was subject to a partnership-level audit by the
IRS (or you’re an owner of a tiered partner of such a
S corporations without built-in gains or excess net partnership), you may have to increase or decrease
passive income: your Oregon income as a result of the audit. Report an
increase in income using addition code 187 or report a
• Skip lines 1 through 5, decrease in income using subtraction code 384, which-
• Enter your apportionment percentage on line 6, ever is applicable. Use these codes even if another
• Enter 0 taxable income on line 7,
code is assigned for the specific type of increased or
• Enter 0 calculated tax on line 8,
decreased income (ORS 314.733). Visit our website for
• Enter 0 total calculated tax on line 10,
more information.
• Then skip to line 11, “Minimum tax” (see
instructions). • Deferred gain recognized from out-of-state disposi-
tion of property acquired in an IRC §1031 or §1033
exchange. See ORS 317.327 regarding the computation
Line 1. Income taxed on federal Form 1120-S.
of the addition if gain or loss is recognized for federal
S corporations with built-in gains or excess net passive tax purposes but not taken into account in the compu-
income: Taxable income. tation of Oregon taxable income.
Line 1(a). Enter the amount from federal Form 1120-S, • Depreciation differences. If your Oregon deprecia-
Schedule D, Part III, line 18. If the amount is negative, tion isn’t the same as your federal depreciation, the
enter 0. difference is a required modification to your Oregon
150-102-025-1 (Rev. 10-17-23) 9 2023 Form OR-20-S Instructions

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return (ORS 317.301). Use Schedule OR-DEPR to deter- Subtractions include:
mine the Oregon modification.
• CPAR subtraction. If you’re an owner of a partner-
• Gain or loss on the disposition of depreciable prop- ship that was subject to a partnership-level audit by
erty. Add the difference in gain or loss on sale of busi- the IRS (or you’re an owner of a tiered partner of such
ness assets when your Oregon basis is less than your a partnership), you may have to increase or decrease
federal basis (ORS 317.356). your Oregon income as a result of the audit. Report an
increase in income using addition code 187 or report a
• Income from sources outside the United States. decrease in income using subtraction code 384, which-
Add income from sources outside the United States, ever is applicable. Use these codes even if another
as defined in IRC §862, not included in federal taxable code is assigned for the specific type of increased or
income under IRC §§861 to 864 (ORS 317.625). decreased income (ORS 314.733). Visit our website for
more information.
• Interest income excluded from the federal return.
Oregon gross income includes interest on all state • Deferred gain recognized from out-of-state disposi-
and municipal bonds or other interest excluded for tion of property acquired in an IRC §1031 or §1033
federal tax purposes. Reduce the addition by any exchange. See ORS 317.327 regarding the computa-
interest incurred to carry the obligations and by any tion of the subtraction if gain or loss is recognized for
expenses incurred in producing this interest income federal tax purposes but not taken into account in the
(ORS 317.309). computation of Oregon taxable income.
• Depreciation differences. If your Oregon deprecia-
• Oregon excise tax and other state or foreign taxes
tion isn’t the same as your federal depreciation, the
on or measured by net income. Oregon excise tax
difference is a required modification to your Oregon
may not be deducted on the Oregon return. Taxes of Schedule OR-DEPR to deter-
return (ORS 317.301). Use
other states or foreign governments on or measured mine the Oregon modification.
by net income or profits may not be deducted on the
Oregon return. If you subtracted these taxes on your • Film production labor rebate. Subtract the amount
federal return, you must add them back on your Ore- received as a labor rebate that’s included in federal tax-
gon return. However, the Oregon minimum tax and able income (ORS 317.394).
local taxes, such as the Multnomah County Business • Gain or loss on the sale of depreciable property. The
Income tax, are deductible, and aren’t required to be difference in gain or loss on the sale of business assets
added back (ORS 317.314). when your Oregon basis is greater than your federal
basis (ORS 317.356 and OAR 150-317-0420).
• Pass-through Entity Elective (PTE-E) tax deducted
on entity-level federal return. If your S corporation is • Interest on obligations of the U.S. and its instrumen-
a member of another PTE who elected to pay Oregon’s talities included in Form OR-20-S, line 1. This applies
PTE-E tax and the PTE claimed a deduction for PTE-E to income tax filers only. Reduce the subtrac tion
tax on their federal return, you must report an addition by any expenses incurred to produce this inter est
on Schedule OR-ASC-CORP. See Form OR-21 Instruc- income.
tions or Publication OR-17 for additional information. • Losses from outside the United States. Subtract losses
from sources outside the United States, as defined in
Subtractions IRC §862, not included in federal taxable income under
IRC §§861 to 864 (ORS 317.625).
Important: Subtractions for S corporations with federal
taxable income or LIFO benefit recapture only. S corpo- • Manufactured dwelling park tenant payments made
rations without federal taxable income, start on line 6. under ORS 90.505 to 90.840 to compensate a tenant for
costs incurred due to the closure of the park may be
Line 3. Total subtractions from Schedule OR-ASC-CORP, subtracted (ORS 317.092).
Section B. The amount by which an item of income is less
• Marijuana business expenses. ORS 317.363 allows
under Oregon law than federal law, or the amount by
Oregon taxpayers filing a corporate excise or income
which an allowable deduc tion is greater under Oregon tax return to deduct business expenses otherwise
law than federal law, is a subtraction on your Oregon barred by IRC §280E if the taxpayer is engaged in mar-
return. Enter only subtractions that apply to taxable ijuana-related activities authorized by ORS 475C.005 to
income included in line 1c. 475C.525, or ORS 475C.700 to 475C.919.
Use Schedule OR-ASC-CORP, Section B, to report the • Psilocybin business expenses. ORS 317.363 allows
amount and description code of each subtraction. Use Oregon corporation excise and income tax filers
the description code from the list in Appendix A. The to subtract certain business expenses otherwise
total of all subtractions is entered on Form OR-20-S, line 3. barred by IRC §280E if the corporation is engaged
150-102-025-1 (Rev. 10-17-23) 10 2023 Form OR-20-S Instructions

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in psilocybin-related activities authorized by ORS income must determine and enter the calculated tax as
475A.210 to 475A.722, the Oregon Psilocybin Ser- follows:
vices Act. Use subtraction code 385 on Schedule
• Is Oregon taxable income $1 million or less? If so, mul-
OR-ASC-CORP.
tiply Oregon taxable income by 6.6 percent and enter
• PTE-E tax refund included on entity-level federal the result. Enter 0 if the result is negative or zero.
return. Your subtraction is limited to the amount of • Is Oregon taxable income greater than $1 million? If so,
the refund that you included as income on your return multiply the amount that’s greater than $1 million by
(ORS 305.100). 7.6 percent, and add $66,000. Enter the result.
• Sale of manufactured dwelling park. The net gain Line 9. Schedule OR-FCG-20 adjustment. A reduced tax
attributable to the sale of a manufactured dwelling rate is available if you sold or exchanged capital assets
park to a tenant’s association, facility purchase asso-
used in farming. Subtract the amount of adjustment for
ciation, or tenant’s association supported nonprofit
tax on net long-term capital gain from farm property
organization is exempt from tax (Note following
from line 9 of Schedule OR-FCG-20 (ORS 317.063).
ORS 317.401).
Line 10. Total calculated tax (line 8 minus line 9).
• State of Oregon interest income included on line 1
(income filers only). Interest income from obligation
of the state of Oregon isn’t taxable if the obligation was Line 11. Minimum tax.
issued after May 24, 1961. Reduce the subtraction by Excise tax filers. S corporations doing business in
any expenses incurred to produce this interest income. Oregon enter $150 minimum tax.
Line 4. S corporation income before net loss deduction Reminder: The minimum tax isn’t apportionable
(line 1 plus line 2, minus line 3). for a short tax year (except a change of accounting
Line 5. Net loss deduction. period).
• Use line 5only for Oregon net loss carried over from a Income tax filers. S corporations not doing business
year the S corporation was a C corporation. Enter as a in Oregon, but with Oregon-source income don’t pay
positive number. minimum tax. Enter 0 for minimum tax.
• Include a schedule showing your computations.
• Net losses are allowed as a deduction against built-in Line 12. Tax (greater of line 10 or line 11). Oregon tax is
gain income only. the greater of total calculated tax or minimum tax.
• The Oregon deduction is the sum of unused net losses
Line 13. Tax adjustment for installment sales interest.
assigned to Oregon for preceding taxable years.
• A net operating loss carryforward is required to be If you owe interest on deferred tax liabilities with respect
reduced by the entire Oregon taxable income of inter- to installment obligations under ORS 314.302, enter the
vening tax years [ORS 317.476(4)(b)]. amount of interest. Include a schedule showing how you
• Net losses can be carried forward up to 15 years to off- computed the interest.
set built-in gain income (ORS 314.766). Line 14. Tax before credits (line 12 plus line 13).
• Oregon doesn’t allow net losses to be carried back.
Line 6. Apportionment percentage. Enter the appor- Credits
tionment percentage from Schedule OR-AP, part 1, line
23. If you have income only in Oregon and don’t appor- For a list and description of Oregon corporation cred its,
tion, enter 100.0000. visit www.oregon.gov/dor.
Line 7. Oregon taxable income (line 4 minus line 5, or Important:
from Schedule OR-AP, part 2, line 12). Complete this • Only credits carried forward from C corporation years
line only if you are an S corporation with federal tax- are allowed on the S corporation return.
able income, built-in gains, or excess net passive income. • No credits are allowed to offset the tax on excess net
Most S corporations enter zero. passive income or minimum tax, unless specified by
statute. Credit carryforwards are only allowed to off-
Tax set the tax on built-in gains [ORS 314.766(5)].
Line 8. Calculated tax. Don’t enter minimum tax on • List credits and codes on the OR-ASC-CORP in the
this line. order you want them used.
All S corporations without federal taxable income, built- Line 15. Total carryforward credits from Schedule OR-
in gains, or excess net passive income enter 0 on lines 8 ASC-CORP, Section D. Use Schedule OR-ASC-CORP to
through 10 and go to line 11. S corporations with fed- report the amount and description of credits. Use the
eral taxable income, built-in gains, or excess net passive description code from the list in Appendix A. The total
150-102-025-1 (Rev. 10-17-23) 11 2023 Form OR-20-S Instructions

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of all credits is entered on Form OR-20-S, line 15. These         Exception: You won’t be charged the 5 percent fail-
credits can apply to tax on recognized built-in gains only.      ure-to-pay penalty  if  you  meet  all  of  the  following 
                                                                 requirements:
Line 16. Tax after carryforward credits (line 14 minus 
line 15).                                                          ° You have a valid federal or Oregon extension, and 
                                                                   ° You pay at least 90 percent of your tax after credits 
Line 17.  LIFO benefit recapture addition. Oregon has            by the original due date of the return, and
adopted the provisions of IRC §1363(d) for S corpora-              ° You file your return within the extension period, and
tions. LIFO benefits are included in taxable income for            ° You pay the balance of tax due when you file your 
the last year of the C corporation under these provisions.       return, and
On the LIFO benefits line of each of the first three returns       ° You pay the interest on the balance of tax due when 
of the new S corporation, add one-third of the tax that          you file your return or within 30 days of the date of 
was deferred from the last year of the C corporation. The        the bill you receive from us.
tax on LIFO benefit recapture is in addition to all other 
                                                                  If you filed with a valid extension but didn’t pay 
taxes, including the Oregon corporate minimum tax for 
                                                                 90 percent of your tax liability by the original due date, 
excise tax filers. Include the computation schedule with         you’ll be charged the 5 percent failure-to-pay penalty.
the Oregon return (ORS 314.771).
                                                                • 20 percent failure-to-file penalty.  Include a penalty 
                                                                 payment of 20 percent of your unpaid tax if you don’t 
Net tax
                                                                 file your return within three months after the due date 
Line 18. Net tax (enter line 16 plus line 17).                   (including extensions). The failure-to-file penalty is in 
                                                                 addition to the 5 percent failure-to-pay penalty.
Payments, penalty, interest, and UND                            • 100 percent late pay and late filing penalty. Include 
Line 19. Estimated tax and prepayments.                          a penalty payment of 100 percent of your unpaid tax 
                                                                 if you don’t file returns for three consecutive years by 
Estimated tax paid for the tax year. Fill in the total esti-     the original or extended return filing due date of the 
mated tax payments made before filing your Oregon                third year. A 100 percent penalty is assessed on each 
return.                                                          year’s tax balance.
Schedule ES—Estimated payments or other prepay-                 Line 23. Interest due with this return. You must pay 
ments. Fill in the total estimated tax payments and any         interest on unpaid taxes if:
payments made with Form OR-20-V. Also include any 
                                                                • You don’t pay the tax balance by the original filing due 
refunds applied from other years on line 5. List name 
                                                                 date, excluding extensions;
and FEIN of the payer only if different from the corpora-       • You file an amended return and have tax to pay; or
tion filing this return. On line 6, enter payments made         • Your taxable income is changed because of a federal or 
with your extension or other prepayments.                        state audit and you owe more tax.
Total. On line 7, enter the total of lines 1 through 6, then    Interest owed on tax starts the day after the due date of 
carry total to Form OR-20-S, line 19.                           your original return, excluding extensions, and ends on 
Line 20. Tax due. Is line 18 more than line 19? If so, line     the date of your payment. Interest is computed daily. 
18 minus line 19.                                               Even if you have an extension to file, you’ll owe interest 
                                                                if you pay after the return’s original due date.
Line 21. Overpayment. Is line 18 less than line 19? If so, 
line 19 minus line 18.                                          To calculate interest:
Line 22. Penalty due with this return. To avoid penalty          Tax × Daily interest rate × Number of days.
and interest, you must make any tax payment owed by             Interest rates and effective dates:
the original due date of the tax return, excluding exten-
sions. You must also e-file or mail your tax return by the        For periods 
original due date, or by the extended due date if you file        beginning            Annually        Daily
with a valid extension.                                          January 1, 2024            8%         0.0219%
                                                                 January 1, 2023            6%         0.0164%
Enter the following penalties on your return if they 
                                                                 January 1, 2022            4%         0.0110%
apply.
• 5 percent failure-to-pay penalty.   Include a penalty         Interest accrues on any unpaid tax during an extension 
payment of 5 percent of your unpaid tax if you don’t            of time to file.
pay by the original due date, even if you have an exten-        Interest will increase by one-third of 1 percent per month 
sion of time to file.                                           (4 percent yearly) on delinquencies if:
150-102-025-1 (Rev. 10-17-23)                                12                                    2023 Form OR-20-S Instructions

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• You file a return showing tax due, or we assessed an Line 27. Refund available (line 21 minus line 25).
existing deficiency; and
Line 28. Amount of refund to be credited to estimated
• The assessment isn’t paid within 60 days after the
tax. You may elect to apply part or all of your refund
notice of assessment is issued; and
to your next year’s estimated tax payments. Fill in the
• You haven’t filed a timely appeal with us.
amount you want to apply. Your election is irrevocable.
Line 24. Interest on underpayment of estimated tax
Elected amounts that are attributable to estimated tax
(UND). You must make quarterly estimated tax pay-
payments received prior to the following year’s first
ments if you expect to owe $500 or more in tax. This
quarter estimated tax due date, will be applied as a
includes Oregon minimum tax. Oregon charges UND
timely first quarter installment of the following year.
interest if: Elected amounts attributable to payments received after
• The quarterly payment is less than the amount due for the following year’s first quarter estimated tax due date,
that quarter; or will be applied to the following year’s estimated tax
• We receive the quarterly payment after that quarter’s account as of the date the payment is received. See ORS
due date; or 314.515 and OAR 150-314-0302.
• No quarterly payments are made during the year and Line 29. Net refund (line 27 minus line 28).
the final tax liability is $500 or more.
Use Form OR-37 to: Schedule SM instructions
• Calculate the amount of underpayment of estimated Schedule SM is for reporting total Oregon modifications
tax; to federal taxable income that are passed through to all
• Compute the interest you owe on the underpayment; S corporation shareholders. If items of income, loss, or
or deduction are different under Oregon and federal law,
• Show you meet an exception to the payment of interest. indicate the federal schedule K-1 line and amount of the
modification.
If you have an underpayment of estimated tax, include
Form OR-37 with your tax return, check the box on page Note: Don’t use Schedule OR-ASC-CORP codes for
1 of Form OR-20-S, and file them before the due date of Schedule SM additions and subtractions.
the return.
Line 1. Interest on government bonds of other states.
If your current year corporation tax liability, including Enter interest the corporation received from states and
the minimum tax, is less than $500, you’re not required local governments other than Oregon and its municipali-
to make estimated payments. Don’t complete this form. ties. Example: Include interest from state of Washington
However, this provision doesn’t apply to a high-income bonds or San Francisco city bonds, but omit interest from
taxpayer. A “high-income taxpayer” is one that had fed- Oregon government bonds.
eral taxable income before net operating loss and capital Line 2. Gain or loss on the sale of depreciable property.
loss carryovers and carrybacks of $1 million or more in Enter the difference in gain or loss on the sale of business
any one of the last three years, not including the current assets when your Oregon basis is less than your basis for
year. Note: This may result in the overpayment being federal purposes (ORS 316.716).
applied to your second estimated tax installment. See
ORS 314.515. Line 3. Other additions. See ORS 316.680 through
316.848. Include a schedule with your return. Examples
Line 25. Total penalty and interest (add lines 22 of other additions include:
through 24).
• Gain from involuntary conversion. An S corporation
shall make the election to defer gain from the involun-
Total due or refund
tary conversion of its owned property.
Line 26. Total due (line 20 plus line 25). See “Filing • Depletion in excess of basis.
checklist” for payment options. Don’t include a Form • High-yield discount obligation interest.
OR-20-V, payment voucher, with your payment if you’re
• PTE-E tax addition: Oregon state taxes deducted on
including a payment with your return.
the federal income tax return.
Note: Any payments received after the original due date
For more information see Form OR-21-MD and instruc-
will be applied first to penalty, then to interest, and then
tions, “Addition for tax deducted at federal level.”
to tax [ORS 305.265(13)].
Taxes paid by the electing PTE to the State of Oregon
Special instructions. If you owe penalty or interest and that are deducted on a federal return filed by the entity
have an overpayment on line 21, and your overpayment must be added to Oregon income. Individual members
is less than total penalty and interest, then fill in the of the electing PTE, or individual members of a PTE
result of line 25 minus line 21, on line 26. that is a member of the electing PTE, report their share
150-102-025-1 (Rev. 10-17-23) 13 2023 Form OR-20-S Instructions

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of the addition on their Oregon personal income tax Line 9. Total Oregon subtractions.
returns, including composite returns joined by non-
Each shareholder’s share of additions and subtractions
resident individuals.
must be reported to the shareholder. These amounts may
Line 4. Total Oregon additions. be added to the federal K-1s and labeled “Oregon addi-
tions” and “Oregon subtractions.” Alternatively, the S
Line 5. Interest from U.S. government. Enter the amount
corporation could use Oregon Schedule OR-K-1 to report
of interest received from the U.S. government, its instru-
the Oregon modifications to each shareholder. Don’t file
mentalities, and organizations that invest in U.S. govern-
the OR-K-1 schedules with your return.
ment securities.
Note: Nonresident shareholders must report their own-
Line 6. Gain or loss on the sale of depreciable property.
ership percentage of modifications, multiplied by the S
Enter the difference in gain or loss on the sale of busi-
corporation’s Oregon apportionment percentage from
ness assets when the Oregon basis is greater than it’s for
Schedule OR-AP.
federal purposes (ORS 316.716).
Authorize your preparer. To authorize a preparer other
Line 7. Work opportunity credit wage reductions. Were
than taxpayer to discuss this return with us, check the
salaries and wages on federal Form 1120-S reduced for
box located above the signature line for “Preparer sig-
the work opportunity tax credit? Enter the amount of
nature other than taxpayer.” To authorize a person other
reduction here.
than the preparer, include a signed Form 150-800-005,
Line 8. Subtractions. See ORS 316.680 through 316.848 Tax Information Authorization and Power of Attorney for
and ORS 314.734(4) and (5). Include a schedule with your Representation.
return. You may subtract the Oregon corporation tax
paid on built-in gains reported on line 1 of the return.
Examples of other subtractions include: Do you have questions or need help?

• Local government bond interest. www.oregon.gov/dor
• Like-kind exchanges. 503-378-4988 or 800-356-4222
• High yield discount obligation dividends. questions.dor@ dor.oregon.gov
• Sale of public utility dividend reinvestment plan stock. Contact us for ADA accommodations or assistance in
• Depreciation of basis differences due to claiming a fed- other languages.
eral tax credit.
• Long-term capital gains from sale of farm.
Include a schedule with your return.

150-102-025-1 (Rev. 10-17-23) 14 2023 Form OR-20-S Instructions

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Appendix A
Corporation Form OR-20-S
2023 Schedule OR-ASC-CORP codes

Additions
Description Code Description Code
Charitable donations not allowed for Oregon ............. 132 Income from sources outside U.S. ................................. 159
CPAR addition .................................................................. 187 Interest income excluded from the federal return
Deferred gain from out-of-state disposition of (state, municipal, and other interest income) ........... 150
property ......................................................................... 118 Oregon excise tax and other tax ..................................... 151
Depreciation differences.................................................. 174 PTE-E tax deducted on entity-level federal return...... 167
Gain or loss on disposition of depreciable property ... 158 Uncategorized addition (must include explanation) ... 199

Subtractions
Description Code Description Code
CPAR subtraction ............................................................. 384 Manufactured dwelling park tenant payments ........... 344
Deferred gain from out-of-state disposition of Marijuana business expenses ......................................... 375
property ......................................................................... 352 Psilocybin business expenses ......................................... 385
Depreciation differences.................................................. 353 PTE-E tax refund included on entity-level
Film production labor rebate .......................................... 336 federal return ................................................................. 387
Gain or loss on sale of depreciable property ................ 356 Sale of manufactured dwelling park ............................. 338
Interest on obligations from the federal return and State of Oregon interest income (income filers only) ... 364
its instrumentalities (income filers only)................... 361 Uncategorized subtraction (must include
Losses from outside U.S. ................................................. 358 explanation) ................................................................... 399

Credits (carryforward from prior C corporation status only)
Description Code Description Code
Standard credits: None
Carryforward credits: Long-term enterprise zone facilities (ORS 317.124) .... 853
Agricultural workforce housing (ORS 315.164) ........... 835 Opportunity Grant Fund (auction) (ORS 315.643) .......871
Bovine manure (ORS 315.176) ........................................ 869 Oregon affordable housing lender’s credit
Business energy (ORS 315.354) ...................................... 839 (ORS 317.097) ................................................................ 854
Child Care Fund contributions (ORS 315.213) ............. 841 Oregon Low-Income Community Jobs Initiative
Crop donation (ORS 315.156) ......................................... 843 (ORS 315.533) ................................................................ 855
Electronic commerce zone investment Oregon production investment fund (auction)
(ORS 315.507) ................................................................ 845 (ORS 315.514) ................................................................ 856
Employer-provided dependent care assistance Renewable energy resource equipment
(ORS 315.204) ................................................................ 846 manufacturing facility (ORS 315.341) ........................ 860
Employer scholarship (ORS 315.237) ............................ 847 Rural technology workforce development
Energy conservation projects (ORS 315.331) ................ 849 (ORS 315.523) ................................................................ 868
Fish screening devices (ORS 315.138)............................ 850 Short line railroad rehabilitation (ORS 315.593) .......... 872
Forest Conservation Tax Credit (FCTC) Transportation projects (ORS 315.336) .......................... 863
(Or Laws 2022, ch 24) ................................................... 873 Uncategorized carryforward credit (must include
Individual Development Account (IDA) donation explanation) ................................................................... 999
(ORS 315.271) ................................................................ 852 University venture fund (ORS 315.640) ........................ 864
Lender’s credit: energy conservation (ORS 317.112)...848 Weatherization lender’s credit (ORS 317.111) .............. 866

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                                      Appendix B
                              Oregon Corporation Form OR-20-S
                              2023 Tax rates and minimum tax

     Note: Corporation excise tax filers pay the greater of calculated tax or minimum tax.

Calculated tax (ORS 317.061)

S corporations without federal taxable income, built-in gains, or excess net passive income generally have 0 calculated 
tax. These corporations pay minimum tax if they’re excise tax filers.
If Oregon taxable income is:
     • $1 million or less, multiply Oregon taxable income by 6.6 percent (not below zero).
     • More than $1 million, multiply the amount exceeding $1 million by 7.6 percent, and add $66,000.

Minimum tax (ORS 317.090)

S corporation minimum tax is $150 for excise tax filers.
Note: Income tax filers pay only calculated tax. They’re not subject to minimum tax.

150-102-025-1 (Rev. 10-17-23)                           16                                2023 Form OR-20-S Instructions

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                                         Appendix C
                              Oregon Corporation Form OR-20-S
                                  Alternative apportionment
               Please read carefully. This information is not the same for all tax programs.
Oregon law allows taxpayers to request an alterna-           Note: Taxpayers filing amended returns for 2015 or prior 
tive method of apportionment using the instructions          must use the form year corresponding to the tax year 
below. Uniform Division of Income for Tax Purposes Act       even though there’s no alternative apportionment check-
(UDITPA) taxpayers filing under ORS 314.605 to ORS           box on the return. Clearly identify that you’re requesting 
314.675, as well as insurers, and taxpayers filing under     alternative apportionment by writing the words “Alter-
ORS 314.280, must use this procedure to apply for alter-     native apportionment request” at the top and adhere 
native apportionment.                                        to all other requirements. Determinations to amended 
                                                             returns may take longer to process.
Administration
                                                             Method 2 —Alternative apportionment petition 
We will review the alternative apportionment request         submitted separately from your original or amended 
and issue a decision letter.                                 return 
If your alternative apportionment petition is denied, you    • Your written petition must have the title “Alternative 
may appeal the denial of your petition to Oregon Tax         apportionment request.”
Court as provided in ORS 305.275.                            • We will not rule on your alternative apportionment 
                                                             request until you file your original or amended return 
If your alternative apportionment petition is approved, 
                                                             using standard apportionment provisions.
you may amend your returns within the normal statute 
                                                             • Your original or amended return, for which the writ-
of limitations. The approval of your petition will remain 
                                                             ten petition requests alternative apportionment, must 
in effect unless and until we revoke it during audit or 
                                                             use standard apportionment provisions.
you file a new petition and receive our approval of the 
                                                             • Mail  your  petition  to:  Oregon  Department  of  Reve-
new proposal.
                                                             nue, Corporation Section, 955 Center St NE, Salem OR 
Allow at least 6 months for us to make a determination.      97301-2555.
Also, note that all petitions for alternative apportion-
ment may result in additional review and documenta-          Both methods of petition
tion requests.                                               • The petition must be signed by the taxpayer or the tax-
                                                             payer’s representative.
Instructions                                                 • You must use standard apportionment provisions to 
• Your written petition for alternative apportionment        complete your original or amended return while the 
  can be submitted with your original or amended             department rules, in writing, on your request for alter-
  return (Method 1) or separate from your original or        native apportionment.
  amended return (Method 2).                                 • In the case of a UDITPA taxpayer, the petition must 
• For administrative purposes, we prefer Method 2.           fully explain the  extent of the taxpayer’s business 
                                                             activity in Oregon and why standard apportionment 
Method 1 —Alternative apportionment petition                 doesn’t fairly and equitably represent the taxpayer’s 
submitted with your original or amended return               business activity in Oregon. An ORS 314.280 taxpayer 
                                                             must fully explain why standard apportionment 
• Check the alternative apportionment checkbox on            doesn’t fairly and equitably represent the amount of 
  the front of the return and include a written peti-        net income the taxpayer earns inside and outside Ore-
  tion for alternative apportionment with your original      gon. An  insurer  must explain  why standard  appor-
  or amended return. Failure to do so could result in        tionment  doesn’t  fairly  and  equitably  represent  the 
  your request being overlooked. This box is to denote       insurer’s business activity within Oregon.
  requests only and isn’t to be used after a request is      • Your petition must fully explain your proposed 
  approved.                                                  method of alternative apportionment and explain why 
• You must include a written petition for alternative        this proposed method is more accurate in reflecting 
  apportionment with your original or amended return         business activity or net income, as appropriate, in Ore-
  if you check the alternative apportionment checkbox.       gon than the standard formula. 
• Do not complete the original or amended return using       • The petition must show how the Oregon return (Form 
  an alternative method of apportionment unless/until        OR-20, OR-20-INC, OR-20-INS, or OR-20-S) would be 
  that  alternative  method  of  apportionment  has  been    completed, including the net tax calculation, using the 
  approved.                                                  proposed method of alternative apportionment.
• Include your petition with your return.
150-102-025-1 (Rev. 10-17-23)                             17                                    2023 Form OR-20-S Instructions

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